Worldwide PC Shipments Below Expectations

Gartner analysts said global shipments were impacted by slower sales in the U.S. market. PC shipments in the U.S. grew 5 percent in the third quarter, however analysts had expected shipments to increase more than 8 percent in the quarter. Other regions performed in line with expectations.

“U.S. home notebook shipments were strong during the quarter, but desktop demand was much weaker, which brought down back to school shipments overall,” said Charles Smulders, vice president of Gartner’s Computing Platforms Worldwide group.

On a vendor basis, Dell extended it unit share lead both worldwide and in the U.S. in the third quarter of 2004 (see Tables 1 and 2). Dell performed particularly well in Europe, as its shipments increased 36.7 percent compared to the same period last year.

Hewlett-Packard’s growth was in line with the industry average, allowing it to maintain its market share compared to a year ago. “Regionally HP is coming under pressure in the U.S. retail market as rivals compete more aggressively for shelf space,” Mr. Smulders said.

In the United States, PC shipments totaled 16.2 million units in the third quarter of 2004, a 5 percent increase from the third quarter of 2003 (see Table 2). Gartner analysts said notebook sales were strong, but desktop demand was much weaker.

On a regional basis, the Europe, Middle East and Africa (EMEA) region performed in line with expectations, as shipments were up 12.6 percent compared to a year ago. Mobile PC growth continues to drive the market, but the strongest growth in demand remains at the entry level price points, which reinforces pressure on margins.

In the Asia/Pacific region, India and Australia showed some of the strongest shipment increases with growth rates of 30 and 19 percent, respectively. Shipments in China grew 11 percent, however a major concern going forward is the impact of government control measures to prevent overheating of the Chinese economy.

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